From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result?
a. deep economic depression
b. influx of foreign capital
c. lessening of foreign aid
d. merchandise trade surplus
a. deep economic depression
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You are just about to finish college and are about to start a high paying job. Because of this new job, what is the most likely outcome in the market for cars?
A) Your demand for cars will increase. B) The market supply of cars will decrease. C) The demand and the supply for cars will decrease. D) Your demand for cars will decrease. E) The market supply of cars will increase.
Which of the following is true?
i. The advanced economies account for more than half of global production. ii. Almost four out of every five people in the world live in the developing economies. iii. In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies. A) Only i and ii B) i, ii, and iii C) Only i D) Only ii and iii E) Only i and iii
Consumers in a country buy only two goods, pens and CDs. The prices and quantities purchased by urban households are in the table above. The reference base year is 2011. If the current year is 2012, the cost of the CPI market basket in 2012 is
A) $3,400. B) $3,508. C) $3,580. D) $3,500. E) $3,588.
If reserve demand is volatile, in order for the central bank to keep interest rates from being volatile, it must:
A. set targets for both interest rates and the quantity of reserves. B. target the quantity of reserves. C. let the quantity of reserves fluctuate. D. not target the interest rates.